Noridian Healthcare Solutions agrees to pay $45 Million to Maryland for flawed Health care exchange website
On Tuesday, officials announced that the main contractor involved in Maryland's flawed health care exchange website will repay $45 million. He has agreed for the repayment in order to avoid any legal action against him.
The state will receive $45 million from Noridian Healthcare Solutions, which is little more than half of what it has paid for the flawed service that never worked. The website was launched on October 1, 2013 as a part of the Affordable Care Act, but it crashed right after that.
Noridian Healthcare Solutions will pay $20 million initially and then it will pay in yearly installments of $5 million for five years. It marks the 61% recovery of the total amount paid. Maryland has rebuilt its website.
Attorney General Brian Frosh said, "There's absolutely no guarantee we would have gotten a penny. We were very concerned that Noridian would not survive as a company and therefore not be able to pay". But it is good that they do not have to go to the court.
Due to the failed website brought a significant delay in filing for health insurance. Rep. Andy Harris said that they had complaints in which people had called numerous times, but they were not able to get through the system.
Harris said that they still have to find out who was responsible at the state level for not being able to properly supervise the company. As per the settlement, the company does not have to take responsibility for the website errors.